The FTSE 100 was steady near all-time record highs on Friday as investors braced for the next phase of China/US trade talks, as Trump prepared to head to Asia.

After closing at a record high of 9,578 yesterday, the FTSE 100 eased back to 9,560 in mid-morning trading. The index also touched an intraday high of 9,594 during yesterday’s session.

“The FTSE 100 held firm after last night’s record close, with strength in banks and tech stocks offsetting weakness in the natural resources space,” says Russ Mould, investment director at AJ Bell.

“Trade relations were front of mind for investors ahead of Donald Trump’s visit to Asia and a new fight between the US and Canada.

“A lot is riding on Trump’s negotiations with China’s Xi Jinping as tensions have been riding high. The market would love clarity on trade agreements between the US and China, and the avoidance of sky-high tariffs. It’s impossible to say whether that will happen, such is the unpredictable nature of Trump, but any positive takeaways could have a major impact on financial markets next week.”

Mild risk aversion was to be expected on Friday, yet the dip appeared to be nothing more than traders reducing exposure after a strong run rather than outright concern.

The London Stock Exchange Group was again the top riser as yesterday’s strong updates were met with a string of broker upgrades. Goldman Sachs had the most ambitious of the broker upgrades, raising its price target to 13,790p from 13,200p. LSEG shares were trading 5% higher at 9,802p at the time of writing.

NatWest was also among the top risers after releasing very attractive Q3 results. Profit rose 35% as income increased 15% amid higher net interest margins and strong underlying customer activity.

“NatWest has joined Barclays in upgrading guidance, a sign that things really are looking up for the UK banking sector. It has been a good 24 hours for UK news, providing hope that the economy is moving out of the doldrums,” said Chris Beauchamp, Chief Market Analyst UK at IG.

“NatWest’s performance means that speculation that it is poised to go hunting for more acquisitions can only increase from here, now that the turnaround efforts have borne fruit.”

NatWest shares were 2% higher at the time of writing.

Gains for NatWest and the London Stock Exchange Group were offset by weakness in miners and utility companies.

Fresnillo shares are starting to lose their shine with the precious metals rally showing signs of consolidation. Fresnillo was the top faller on Friday, down 2%, but that is nothing compared to the 240% gain the stock has seen so far this year.

Metlen Energy & Metals and Glencore were also among the fallers.

More good news from FTSE 100 banks. NatWest profit surged 35% in the third quarter compared to the same period last year as income increased 15%.

Natwest shares rose by more than 3% in the immediate reaction after hitting their highest levels since 2010 in very early trade on Friday.

“NatWest has joined Barclays in upgrading guidance, a sign that things really are looking up for the UK banking sector,” said Chris Beauchamp, Chief Market Analyst UK at IG.

“It has been a good 24 hours for UK news, providing hope that the economy is moving out of the doldrums. NatWest’s performance means that speculation that it is poised to go hunting for more acquisitions can only increase from here, now that the turnaround efforts have borne fruit.”

NatWest’s total income surged 15.7% year-on-year in Q3 and 8.2% quarter-on-quarter as net interest margin rose 9 basis points to 2.37%.

Operating expenses fell by £43 million versus Q2 despite a £171 million year-on-year increase, while the bank reduced headcount by approximately 600 full-time equivalents compared to Q3 2024.

NatWest’s impairment charges were also relatively low compared to its peers, underscoring strong underlying customer health.

“NatWest’s Q3 results paint a picture of a bank firing on all cylinders, with total income of £4.332 billion, representing a 5.7% beat versus consensus,” explained Max Harper, Analyst at Third Bridge.

“Another rise in income guidance to £16.3 billion, from over £16 billion, is very positive and should signal confidence in their strategy to the market.

“Net Interest Income (NII) outperformed by 5.6% to £3.268 billion, supported by a 9 basis point expansion in Net Interest Margin (NIM) to 2.37%. Our experts believe this is down to NatWest’s core competitive advantage, which is its ability to build relationships. Compared with other UK banks, their customers are more sticky, with fewer rate chasers, resulting in a resilient customer base.”

With earnings on the horizon, Nvidia’s shares offer further upside despite trading at a very rich valuation and have every chance of breaching $200 before they report in November.

Trading at $182 per share, Nvidia has a forward P/E ratio of about 40×.

Although this is rich compared with the broader market, the group’s explosive revenue and earnings growth projections more than justify current multiples. Investors have to look beyond the next 12 months to validate the group’s valuation.

Many analysts expected 40–45% annual earnings growth through 2027, and investment banks maintain a “Buy” rating with Goldman Sachs, Morgan Stanley, and Bank of America all having price targets in the $210–$230 range.

The company guided revenue to increase 54% year-on-year in Q3, and investors will eagerly await earnings, due for release on 19th November, for signs of continued momentum.

“From a fundamental perspective, NVIDIA’s financial strength remains exceptional. In fiscal year 2025 (February 2024 – January 2025), the company generated over $130 billion in revenue, doubling from the previous year,” said Linh Tran, Market Analyst at XS.com.

“This surge was driven primarily by soaring demand from data centers and the wave of investment in AI infrastructure by tech giants such as Microsoft, Google, Amazon, and Meta. Its gross margin remained around 74–75%, underscoring NVIDIA’s near-monopolistic advantage in GPUs and specialized software.

“With its proprietary CUDA ecosystem and the advanced Blackwell architecture, the company controls over 80% of the global AI-GPU market — leaving rivals like AMD and Intel struggling to catch up.”

Tran continued to explain that while Nvidia has conquered most of the world’s chip markets, the key to the outlook for the chipmaker lay in China/US trade relations and whether they will be able to continue to service China’s burgeoning tech giants.

“Yet, despite its dominance, NVIDIA faces growing risks. One of the biggest factors clouding its medium-term outlook is U.S.–China trade policy,” Tran explained.

“According to a Reuters report last week, the Trump administration is considering new export restrictions on products made using U.S. software, potentially expanding trade limits far beyond the semiconductor sector. Such measures could affect NVIDIA directly, as China accounts for roughly 20–25% of its revenue. If these restrictions are enacted, NVIDIA’s high-end chips like H200 and L20 could face barriers in supplying Chinese cloud giants such as Alibaba, Baidu, and Tencent.”

Nvidia reaching $200 before it reports earnings will depend on how talks between China and the US develop. But whatever the outcome, it is likely to prove a sideshow in Nvidia’s overall growth in the coming years.

“In the long term, NVIDIA’s outlook remains highly positive. Global demand for AI computing, simulation, and data processing continues to grow exponentially. National AI projects, autonomous-vehicle investments, and edge-computing infrastructure all open new growth cycles. Furthermore, NVIDIA benefits from an “exclusive ecosystem” — a unique integration of hardware and software that no competitor can easily replicate,” Tran concluded.